IS BITCOIN A CURRENCY?
Bitcoin Is An Asset, Not A Currency
Is Bitcoin the currency of the future? No, because its value is unstable & its transaction processing is too slow
The most important feature of a currency is that it be a stable store of value. Instability in currency values mean that an investor cannot accurately predict the value of those future earnings. This uncertainty makes investments less valuable; thus, less investment happens.
Another basic feature of a currency, beyond being a stable store of value, is to facilitate transactions. Barter’s big drawback is it is inconvenient. It’s hard to make change and you must find two people who want to exchange goods; three or four way trades get complicated. Currency solves those problems meaning I can buy groceries without having to sell economic services to the supermarket.
This convenience is why people moved from barter to currencies (and then from metal to paper, from paper to plastic, and from plastic to electronic bits).
Yet, to protect the security of the blockchain that makes cryptocurrencies like Bitcoin so secure, processing of Bitcoin transactions is very slow. In fact, because of a limit on the number of transactions which can be completed in a day, it sometimes takes days to complete a simple transaction.
Given these drawbacks, the only reasons to own Bitcoins are not to use them as a currency, but to either speculate on their asset value or use them to shield transactions from others. Without a stable value Bitcoin cannot truly be a currency. Rather it is a commodity asset that one trades, like gold or silver, in hopes that its value will rise and yield a trading profit.Bitcoins have no uses other than allowing people to hide wealth, conceal (often illegal) transactions, and make and lose money by trading them.
HOW DO BITCOINS PAYMENTS WORK?
1). Get a wallet First you'll need a bitcoin wallet – an app that lets you receive, hold, and spend bitcoin.
2).Move bitcoin into your spending wallet
If you don't yet have bitcoin in your bitcoin wallet yet, you'll need to buy some.
3).Make a payment
Making a bitcoin payment is fast, convenient, and extremely secure.
If you don't yet have bitcoin in your bitcoin wallet yet, you'll need to buy some.
3).Make a payment
Making a bitcoin payment is fast, convenient, and extremely secure.
A). Scan the QR code
B).Open in Wallet C).Send the Payment Manually
WHAT IS THE PURPOSE OF A DISTRIBUTED LEDGER AND HOW DOES IT COMPARE TO A BANK?
Distributed ledger technology(DLT) could reshape how we store and transmit both money and information. Today when money moves, each party involved marks the transaction in its ledger. Record-keeping and reconciliation are duplicative processes that repeat across the separate financial accounts of remitters, banks, central banks, clearing systems and beneficiaries.The inefficiency is exaggerated and most acute for global payments, since time zone differences, cut-off times and other complexities can add days of delay.
Distributed ledger technologies have the potential to speed transactions because they remove the need for a central authority or middleman. Similarly, distributed ledgers also reduce costs of transactions. It is much more secure because it’s allows for storage of all information in a secure and accurate manner by using cryptography. The same can be accessed using "keys" and cryptographic signatures. Once the information is stored, it becomes an immutable database and is governed by the rules of the network.
This makes the central database vulnerable to cyber-crime, and prone to delays since a central body has to update each distantly located note. The idea of decentralized ledger itself makes them immune to a cyber-crime, as all the copies stored across the network need to be attacked at the same time for the attack to be successful. Additionally, the simultaneous (peer-to-peer) sharing and updating of records make the whole process much faster, more effective, and chea
WHAT ARE THE PROS AND CONS OF USING BITCOINS IN A TRANSACTION?
There are several advantages of using bitcoins.
1. Using bitcoins makes your life much easier.It reduces a lot of transaction cost and
provides freedom in payment. Currently there are either no fees, or very low fees
within Bitcoin payments. For example, digital Currency exchanges help merchant process
transactions by converting bitcoins into fiat currency. These services generally have lower
fees than credit cards and PayPal
provides freedom in payment. Currently there are either no fees, or very low fees
within Bitcoin payments. For example, digital Currency exchanges help merchant process
transactions by converting bitcoins into fiat currency. These services generally have lower
fees than credit cards and PayPal
2.No necessary to worry about crossing borders, rescheduling for bank holidays, or any
other limitations.WIth Bitcoin, it is very possible to be able to send and get money anywhere
in the world at any given time.
other limitations.WIth Bitcoin, it is very possible to be able to send and get money anywhere
in the world at any given time.
3.Security is the vital function of Bitcoins. Using Bitcoins is very safety and controllable.
Since personal information is kept hidden from prying eyes, Bitcoin protects against identity
theft.And it can be backed up and encrypted to ensure the safety of your money.
Since personal information is kept hidden from prying eyes, Bitcoin protects against identity
theft.And it can be backed up and encrypted to ensure the safety of your money.
4.In term of transparent, Bitcoin protocol cannot be manipulated by any person, organization,
or government. This is due to Bitcoin being cryptographically secure.
or government. This is due to Bitcoin being cryptographically secure.
However,there are several disadvantages of using bitcoins.
To start with, Bitcoins are not widely accepted.This makes it unfeasible to completely rely on
Bitcoins as a currency. Next, the value of bitcoin is volatile. Bitcoin has volatility mainly due to the fact
that there is a limited amount of coins and the demand for them increases by each passing day and
digital currencies.Finally, Bitcoin is still developing. Bitcoin is still at its infancy stage with incomplete
features that are in development.To make the digital currency more secure and accessible,
new features, tools,and services are currently being developed.
Bitcoins as a currency. Next, the value of bitcoin is volatile. Bitcoin has volatility mainly due to the fact
that there is a limited amount of coins and the demand for them increases by each passing day and
digital currencies.Finally, Bitcoin is still developing. Bitcoin is still at its infancy stage with incomplete
features that are in development.To make the digital currency more secure and accessible,
new features, tools,and services are currently being developed.
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Citations:
https://bitpay.com/pay-with-bitcoin
